Question:
The following are typical disclosures that would appear in the notes accompanying financial statements.
For each of the items listed, indicate where the disclosure would likely appear—either in (A) the
significant accounting policies note or (B) a separate note.
Answer:
Inventory costing method A
2. Information on related-party transactions B _
3. Composition of property, plant, and equipment B _
4. Depreciation method A
5. Subsequent event information B _
6. Basis of revenue recognition on long-term contracts A
7. Important merger occurring after year-end B _
8. Composition of receivables B
The following are typical disclosures that would appear in the notes accompanying financial statements.
For each of the items listed, indicate where the disclosure would likely appear—either in (A) the
significant accounting policies note or (B) a separate note.
Answer:
Inventory costing method A
2. Information on related-party transactions B _
3. Composition of property, plant, and equipment B _
4. Depreciation method A
5. Subsequent event information B _
6. Basis of revenue recognition on long-term contracts A
7. Important merger occurring after year-end B _
8. Composition of receivables B
